Economics · May / June 2020 · Paper 12 · Question 3

A student decides to take up a two year apprenticeship for which she will earn $10 000 per year. After that she expects to earn $25 000 per year. She could take an unskilled job which pays $16 000 per year instead of the apprenticeship. What is the opportunity cost in the two years of completing the apprenticeship?

1. A$10 000
2. B$12 000
3. C$25 000
4. D$32 000

As printed in the paper